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Strong Storage Sales Boost IBM's Q2 Results

Despite an increasingly tough economic climate IBM reported a strong set of second quarter results last night, buoyed by services and strong storage sales.

IBMs second quarter revenues were $26.8 billion, up 13 percent on the same period last year, and well above analyst estimates of $25.92 billion.

The vendor earned $1.98 per share on net income of $2.77 billion in second quarter, up from $1.55 and net income of $2.26 billion in the same period last year. Analysts had estimated earnings of $1.82.

”This is one of the best quarters I’ve ever seen,” said Mark Loughridge, the IBM CFO, during a conference call last night, explaining that the vendor’s services business is going from strength to strength. “Our services momentum continued with great revenue growth, signings growth, and margin expansion.”

IBM’s Global Technology Services grew over 15 percent in second quarter to $20.5 billion and the vendor’s Business Services operation experienced similar growth, bringing in $10.5 billion.

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